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#Electricity: Leveraging Gas to Power Nigeria
In order for any country to experience sustainable growth, there is an underlying need for consistent, affordable, and environmentally-friendly energy.
Electricity plays a fundamental role in the socio-economic progress and development of every nation.
It facilitates the provision of basic amenities, essential health care, food, communication and transport.
It is also responsible for powering industries; from manufacturing to mining to agriculture to e-commerce to real estate and much more.
The Nigerian energy industry is arguably one of the most inefficient in meeting the energy needs of its consumers.
The persisting energy crises has weakened the progress of industrialization, hindered development, and contributed negatively to the quality of life in a country where majority of the populace live on less than $2 a day.
According to the Gas exporting countries forum, Nigeria has proven reserves of well over 5 trillion m³, the largest proven gas reserves in Africa.
With gas reserves far greater than our oil reserves, gas not only has the potential to power Nigeria for the next 50+ years, it also offers a comparably cheaper and cleaner way of generating energy.
Nigeria has reportedly flared more gas than any other country in the world despite the fact that the benefits of gas go beyond the socio-economic.
Gas discoveries in Nigeria have, for the most part, been incidental oil exploration and production activities.
As a result, despite the associated environmental hazards of gas flaring, experts say Nigeria used to flare about 1.2 billion cubic feet of gas a day (bcf/d), which could fuel about 7000MW of efficient thermal electric power, over 1,400 agro-processing facilities, 350 textile plants, and 70 fertilizer plants with a plethora of opportunities to create over one million jobs.
This amount of gas flared represents 12.5 percent of all globally flared gas. Between January and September 2014, Nigeria lost about $1billion as oil companies operating in the country flared a large proportion of the gas produced. This figure has now reduced by almost 50%, due to a realisation of the value of gas.
IOCs such as Shell recently announced they will focus their future investments in Nigeria on gas. Indigenous companies have also increased their own focus on the gas industry. For example, the indigenous oil and gas firm, Seplat Petroleum Development Company has invested $300m in the gas business.
The company also expanded its gas processing facility in Oben, Edo State to boost power generation in the region.
Oando PLC is another example. Their mid-stream subsidiary has begun the expansion of the Trans Amadi gas pipeline located in Port Harcourt, as well as a further extensive build-out of its vast Lagos gas grid to connect off-takers located on the Ijora-Marina-Bonny Camp axis.
The company has earmarked its approach as part of a long-term strategy to drive gas production and supply in every industrial centre in Nigeria. Oando has also announced plans to invest $36 million, in the construction of three gas-compression plants in the country within the next year.
A final example can be found in Seven Energy who recently secured a $495 million loan from a consortium of Nigerian and international lenders to help fund its spending to supply gas to the domestic market.
Seven has already invested $1 billion in related projects in the southeast gas fields along with the related infrastructure and pipelines so it can sell gas into the domestic market for use in power generation and industrial consumption.
These projects are all timely especially considering that domestic gas demand is projected to reach 5 billion cubic feet daily in the next two years.
The International Energy Agency (IEA) forecasts overall power generation in Africa to increase its current level of 17% to above 25% by 2040, further spurring an economy such as Nigeria’s, which is projected to grow to $4.2-trillion by 2040 and take its place as the world’s 4th largest economy.
This clearly outlines the trajectory of the global energy industry.
Undoubtedly, the transformation of Nigeria’s power sector is key in order to drive economic growth.
The power privatisation process, and the simultaneous process of divestment by major IOCs from gas rich, onshore Nigeria Delta assets heralded a period of investment in gas processing and distribution infrastructure that is vital to the long term success of the power industry, but much work remains to be done.
It is imperative that the government commits to accelerating and finishing the work that has been started in this area.
In certain areas, incentives, concessions, and enabling policies are still required. Institutions such as the World Bank have recognised this; its Partial Risk Guarantee Scheme in Nigeria is the largest such scheme in the world.
To provide the guarantees many investors are seeking, there has to be a regulatory process to enhance the creditworthiness of gas off-takers, along with the bankability and enforceability of domestic supply contracts as well as the gas price regime.
The benefits, if a viable framework is implemented, are exponential and indisputable. It is a simple fact that improving power generation and supply will have a considerable impact on our annual economic growth.
At a time when the Naira has devalued significantly and our overreliance on imported petroleum products has driven the currency even further down, import substitution is vital to power plants and industries to drive inclusive economic growth.
It is very clear that Nigeria’s energy requirements are very high while supply remains inadequate, insecure, and irregular.
Nonetheless, there is a firm belief in the future of the Nigerian gas industry and its potential to have a positive and tangible impact on energy provision, the economy and quality of life of every Nigerian.
Dawn Dimowo is a consultant with africapractice providing political and business intelligence, analysis and communications support to local and international clients in different industries including extractives, agriculture, ICT and finance. She worked formerly at the office of Legal Affairs of INTERPOL in Lyon and more recently with a government agency in Abuja. Dawn is a qualified lawyer and speaks English and French fluently
The World Bank Group has announced the 31-month debarments of United Aviation Services Limited (UNASEL), a transportation services company based in Nigeria, and Air Vice Marshal Alkali Mamu, its owner and president, “in connection with fraudulent practices under the Enhancing Niger Northeastern Connectivity Project,” according to a press release issued by the multilateral development bank.
The statement said that the project aims to enhance connectivity and road safety along the Zinder-Agadez Road section and improve access to basic socioeconomic infrastructure for selected communities in that road section.
However, according to the statement: “UNASEL and Mr. Mamu presented false experience documents in a prequalification application to qualify for a contract under the project. This was a fraudulent practice under the World Bank’s sanctions framework.”
“The debarments make UNASEL and Mr. Mamu ineligible to participate in projects and operations financed by Bank Group institutions. The debarments are part of two settlement agreements under which UNASEL and Mr. Mamu admit culpability for the underlying sanctionable practices,” it added.
The statement further said: “Per the Bank Group Sanctioning Guidelines, the settlement agreements provide for a reduced period of debarment in light of UNASEL and Mr. Mamu’s cooperation.
As a condition for release from sanction under the terms of the settlement agreements, UNASEL and Mr. Mamu commit to developing and implementing integrity compliance measures that reflect the relevant principles set out in the Bank Group Integrity Compliance Guidelines, and Mr. Mamu further agrees to complete corporate ethics training.
UNASEL and Mr. Mamu also commit to continue to fully cooperate with the Bank Group’s Integrity Vice Presidency.
“The debarments of UNA SEL and Mr. Mamu qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.”
Governor Peter Mbah of Enugu State, has approved the allocation of a parcel of land in Enugu, the state capital, for the establishment of a state-of-the-art Digital Fabrication Centre by the Industrial Training Fund.
Mbah announced this while receiving a delegation from the Industrial Training Fund on a courtesy visit to the Government House, Enugu.
The ITF disclosed this on Friday in a statement signed by its Director of Press and Public Relations, Thomas Ngor.
According to the statement, Mbah described the proposed project as timely and aligned with his administration’s vision of transforming Enugu into a leading destination for investment, innovation and technology-driven industrial development.
He noted that the future of economic prosperity lies in deliberate investments in human capital and emerging technologies, adding that the state has continued to create an enabling environment for innovation, enterprise and sustainable growth.
The governor explained that his administration has made technical education compulsory in the state’s basic education system, with emphasis on digital literacy, robotics and mechatronics to prepare learners for the future of work.
According to him, many traditional trades are now driven by digital technologies, making it imperative to equip young people with relevant technical competencies that will enable them to compete globally and contribute meaningfully to economic development.
Governor Mbah further disclosed that his administration has built smart schools across the state, equipped with robotics centres, mechatronics laboratories and other modern learning facilities, to prepare youths for the evolving global economy.
He noted that artificial intelligence is expected to contribute about $20tn to the global economy in the coming years.
He therefore stressed that the state must be intentional about upskilling its citizens, adding that the establishment of the ITF Digital Fabrication Centre will significantly strengthen the state’s drive to build a knowledge-based economy, foster innovation, promote local manufacturing and create employment opportunities for its growing youthful population.
Earlier, Afiz Ogun, the Director-General of the ITF, who led the delegation, said that upon his appointment by President Bola Tinubu, he was mandated to upskill Nigerian artisans to international standards.
He explained that the Fund subsequently repositioned its technical and vocational skills development efforts through strategic initiatives, including the Skill-Up Artisans Programme, which is designed to train, certify and license Nigerian artisans to international standards.
Ogun disclosed that the Fund had already established a Digital Fabrication Centre in Ikeja, Lagos, with the capacity to produce more than 400 different products. He therefore requested the allocation of land in Enugu State to establish a similar centre with the same production capacity.
According to him, the initiative is aimed at promoting industrialisation, reducing dependence on imports and preparing Nigerians for opportunities in the Fourth Industrial Revolution.
He also reaffirmed the Fund’s readiness to enter into public-private partnerships that will transform Nigeria’s artisanal ecosystem.
Ogun further noted that digital technologies, including artificial intelligence, robotics and computer-aided manufacturing, are rapidly transforming the global economy, making it imperative for Nigeria to deliberately invest in upskilling its workforce to remain globally competitive.
The ITF delegation was later conducted on a guided tour of facilities at one of the smart schools established by the Enugu State Government.
Glovo, a multi-category tech company, has announced its integration into the generative AI ecosystem with the launch of its “Shopping Assistant” for ChatGPT and Claude. Users can now discover retail products, compare prices, and seamlessly order any item using natural conversational language with the AI systems.
The Glovo experience inside such platforms introduces a conversational commerce model that shifts from a search-based web to an intent-based web. Rather than navigating traditional app menus and filters, users can express needs, such as asking for a “last-minute gift for a coffee lover under ₦50,000”, and the assistant handles semantic search, location validation, and product curation.
A Seamless, Concierge-Like Experience
Once both platforms have been connected through either ChatGPT or Claude apps, the user will be able to have a multi-turn dialogue where the assistant remembers context and constraints, such as budget caps. Users receive a visual carousel of up to five highly customised product options available at local stores. Each product displays its image, name, store details and ratings, and price. While the search and discovery experience takes place directly on the Generative AI platforms, selecting a product via the “view on Glovo” button takes the user to the Glovo mobile or web app, where the payment and final purchase are exclusively completed.
Strategic Focus on Retail and Growth
Glovo is prioritising the retail and grocery sectors for this initial launch, capturing the established habit of using AI for product research. Generative AI has driven a significant jump in retail traffic globally, so this first-mover advantage aims to meet customers where they are meeting Gen AI daily, and ensure it captures high-intent organic traffic as search behaviours evolve.
“We’re always looking for ways to meet our customers where they already are. Being available on Claude and ChatGPT means people can discover what Glovo has to offer as part of a natural conversation, with no friction. Glovo has always been about being the everyday app that provides choice and convenience, and this is another step in that direction”, said Shiro Theuri, Chief Technology Officer at Glovo.
How to look for products in the Glovo app through ChatGPT or Claude
- The user must sync ChatGPT or Claude with the Glovo app with the plug-in.
- Once synced, the user must type in @glovo followed by their request.
- The AI platform displays a carousel with 5 available options for the user.
- If the user wants to purchase any of the products or continue searching within the Glovo app, they must click “View on Glovo”, which will redirect the user to the Glovo app or website.
- After the order is confirmed, the store will prepare the item(s) and the courier will head up to the pick-up location. The user will receive the order in minutes.
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